New Year resolution 2019: 10 promises every investor should make to self

It's about time where everyone picks up their 'Resolution Book' and list down things they plan to stick by, trying to progress and improvise little things in life. For those who hope to develop the habit of saving and investing, there cannot be a better time than the new year. 2019 brings many opportunities for potential investors looking to grow their money. At the same time, it also allows the existing investors to learn from their past mistakes and ensure that the same are repeated over the next 12 months. Here are a few promises every investor should make heading into New Year 2019:

1. Outline a personal financial statement  

Looking at your financial statement thoroughly before taking an impulsive investment decision is remarkably necessary, especially if it is your first investment. Once you know where exactly do you stand on financial parameters figuring out the successive goals will get easier. 

2. List your goals

There are various options available at the investor's disposal, each having different risk and rewards. Figuring out your goal and categorizing it into your short term, long term, a mid-term goal helps you knock down a balance between the returns and risk. 

Tanwir Alam, Founder & MD, Fincart told Zee Business Online that any product opted for should meet investor's goal. "There's only one thing, instead of buying the product they should focus on the goal. The products are means to an end and they should match your goals," he said.

3. Assess your risk-taking ability     

Investments have never been risk-free or guaranteed a hundred per cent return, so after going through your financial capacity, you can easily figure out the amount of risk you can absorb. For example, investing in Government securities such as post office schemes, which will guarantee an assured return versus the equity investment which is fluctuating in nature and there might stand a possibility of losing the principal amount. The risk is directly proportional to the return on investment, higher the risk, higher the return and lower the risk, lower the return!

4. Always ensure an appropriate mix of investments

Do not invest your money in a single security, always make sure that your investment portfolio combines different securities with different characteristics. Maybe, some with higher risk and others will lower rate of return. This helps maintain a balance between security and risk. 

5. Align your portfolio with your goals

Please ensure that the investment goals you have listed for yourself, your securities' characteristics lay synonymous with your agenda. For example, short-term goals require high risk, high reward and high liquidity. 

6. Have some cash available

Saving and investment don't necessarily mean that you invest the entire leftover amount in an investment product or a scheme. Please ensure that you have some liquid cash with you at all times which can be used at the time of emergency and distress. 

7. Time horizon

Do not get confused with so many securities laid out in the market. As per your requirement and need, the factor 'when' plays a major role. If you need long-term investment, the risk factor will be relatively lower but tenure will be longer. So make sure you define your tenure and accordingly sideline your investment. 

8. Don't track the hot trail

If you have your own investment guru or if any expert has told you to invest in a specific security, that doesn't guarantee a 100% accurate result. Do not let it deviate you from your primary path and chase the crowd. You can invite trouble for yourself like that!

9. Don't sweat on incurring losses

Investment and share markets are all about incline and decline. The graph will never remain steady. In case you incur a loss, do not sweat over it. Sometimes you lose, sometimes you gain. Nothing in the securities is ever steady.

10. Select an approach and stick to it

Once you choose a strategy for yourself, after intensive studying, make sure you stick to it irrespective of any external adversities. Your approach should be made after clearing your goals, evaluating your financial position, figuring out the tenure etc.